April 27 (SeeNews) - Croatia's government said on Thursday it will pledge shares in telecoms operator Hrvatski Telekom, food and drug producer Podravka, Croatia Airlines and conglomerate Djuro Djakovic Group as collateral for a 350 million kuna ($50.8 million/46.8 million euro) loan to state-owned fertilizer maker Petrokemija.
The loan, to be extended by state-owned development bank HBOR, aims to help Petrokemija stabilise its operations, but also create preconditions for its privatisation, the company said in Zagreb bourse filing.
Earlier this month, majority state-owned Petrokemija announced it has started shutting down parts of its production facilities after receiving notice from Prvo plinarsko drustvo that the gas supplies to the company will be suspended because of outstanding debt. The government, however, stepped in and gas supplies were continued.
"The government of Croatia, as the majority owner of Petrokemija, is ready to engage itself in finding the resources necessary to back Petrokemija's liquidity. We are also facing a serious process of restructuring and recapitalisation of the company in order to ensure its long-term viability," prime minister Andrej Plenkovic said at the time.
The government controls some 80% of Petrokemija.